New Delhi: India's strong macroeconomic buffers will help real sectors of the economy weather the challenges posed by geopolitical tensions and continue the growth momentum during the current financial year, a Finance Ministry report released on Friday said. Should be found.
According to the report, formal jobs are on the rise, as indicated by rising wage growth under the Employees Provident Fund Organisation.
It said the urban unemployment rate declined year-on-year, labor force participation rate and worker-to-population ratio improved during the quarter ending March 2024.
The April edition of the Monthly Review of the Department of Economic Affairs said growth and employment as well as other macroeconomic indicators were improving.
“Retail inflation in April 2024 stood at 4.83 percent, which is the lowest in the last one month.On the external front, despite global challenges, India's foreign exchange reserves are comfortable, and the Indian rupee has been one of the most resilient against the US dollar in recent months, "it said.
From a fiscal perspective, it said, the strong trend in general government capital expenditure during April-February of FY2014, coupled with fiscal consolidation plans reflected in the FY2015 Budget, should allay concerns about debt sustainability. Have given.
Thus, the key pillars of India's macroeconomic strength, including growth price stability and fiscal management, are directionally positive and mutually reinforcing, it said.
“Continued geopolitical tensions and volatility in global commodity prices, particularly of petroleum products, pose substantial multi-front challenges.Nevertheless, the expectation is that the macroeconomic buffers nurtured and strengthened during the post-Covid management of the economy will help the Indian economy manage these challenges reasonably smoothly,” it said.
The report also said that domestic manufacturing is likely to receive strong external support in the coming months.
It said a slight improvement in economic activity and consumer sentiment in Europe and a stable US economy helped India's exports in April. There are reports indicating that the number of organizations focusing on reindustrialization has increased in the US and Europe.It said factors such as the ongoing recovery in the hotel and tourism industry, increased credit flows to the transport and real estate sectors, policy support and strong investment in physical and digital infrastructure and logistics will help the services sector.
It said strong export growth in April 2024 indicates that the momentum in services trade has been carried forward into FY2025.
On the future inflation path, the report said, government initiatives to stabilize prices of essential food items, including open market sales, monitoring of stocks and trade policy measures, will help stabilize food prices. are doing.
The prices of key commodities like wheat and gram are expected to soften from the 2024-25 Rabi marketing season harvest.
I said, “The prediction of normal south-west monsoon also bodes well for reducing pressure on food production and prices.
According to the report, formal jobs are on the rise, as indicated by rising wage growth under the Employees Provident Fund Organisation.
It said the urban unemployment rate declined year-on-year, labor force participation rate and worker-to-population ratio improved during the quarter ending March 2024.
The April edition of the Monthly Review of the Department of Economic Affairs said growth and employment as well as other macroeconomic indicators were improving.
“Retail inflation in April 2024 stood at 4.83 percent, which is the lowest in the last one month.On the external front, despite global challenges, India's foreign exchange reserves are comfortable, and the Indian rupee has been one of the most resilient against the US dollar in recent months, "it said.
From a fiscal perspective, it said, the strong trend in general government capital expenditure during April-February of FY2014, coupled with fiscal consolidation plans reflected in the FY2015 Budget, should allay concerns about debt sustainability. Have given.
Thus, the key pillars of India's macroeconomic strength, including growth price stability and fiscal management, are directionally positive and mutually reinforcing, it said.
“Continued geopolitical tensions and volatility in global commodity prices, particularly of petroleum products, pose substantial multi-front challenges.Nevertheless, the expectation is that the macroeconomic buffers nurtured and strengthened during the post-Covid management of the economy will help the Indian economy manage these challenges reasonably smoothly,” it said.
The report also said that domestic manufacturing is likely to receive strong external support in the coming months.
It said a slight improvement in economic activity and consumer sentiment in Europe and a stable US economy helped India's exports in April. There are reports indicating that the number of organizations focusing on reindustrialization has increased in the US and Europe.It said factors such as the ongoing recovery in the hotel and tourism industry, increased credit flows to the transport and real estate sectors, policy support and strong investment in physical and digital infrastructure and logistics will help the services sector.
It said strong export growth in April 2024 indicates that the momentum in services trade has been carried forward into FY2025.
On the future inflation path, the report said, government initiatives to stabilize prices of essential food items, including open market sales, monitoring of stocks and trade policy measures, will help stabilize food prices. are doing.
The prices of key commodities like wheat and gram are expected to soften from the 2024-25 Rabi marketing season harvest.
I said, “The prediction of normal south-west monsoon also bodes well for reducing pressure on food production and prices.
